Federal Contractor Report
February 2019
Federal Contractors Conference
Early registration ends March 1
 
Register today for the 2019 AGC Federal Contractors Conference taking place June 10-12, 2019, in Washington, D.C. This discount offer ends March 1 and space is limited. The Federal Contractors Conference discusses the latest projects, policies and contracting issues facing the industry with federal agencies, including the U.S. Army Corps of Engineers, Naval Facility Engineering Command, Air Force Civil Engineer Center, General Services Administration, Department of Veterans Affairs, Department of State, Natural Resources Conservation Service, and Bureau of Reclamation.
Federal Government
 
On Jan. 30, AGC urged members of the government funding bipartisan conference committee to reach a broad compromise and avert another government shutdown on Feb. 15. AGC recommended that a final deal should include funding and policies addressing the nation’s border security, immigration system and infrastructure needs. Specifically, components of such a deal should include an earned legal pathway toward legal status or citizenship for the 120,000 construction workers with Temporary Protected Status or in the Deferred Action for Childhood Arrivals Program, while also addressing border security. In addition, such a compromise should include 2018 disaster-aid infrastructure funding to help communities recover and rebuild as well as an additional $10 billion over FY 2017 levels for federal infrastructure programs as Congress promised in 2018.

For more information, contact Jimmy Christianson at christiansonj@agc.org or (703) 837-5325.
Federal Agencies to Make Program-by-Program Implementation Determinations
 
On Jan. 31., President Trump issued the “Strengthening Buy American Preferences for Infrastructure Projects” Executive Order (EO). The Order calls on federal agencies to encourage—not mandate—recipients of new federal financial assistance awards to use—to the greatest extent practicable—iron and aluminum as well as steel, cement, and other manufactured products produced in the U.S. in every contract, subcontract, purchase order, or sub-award. According to sources at a wide array of federal agencies, it remains unclear how—or if—this EO will impact various federal-aid construction programs, including but not limited to the Federal-Aid Highway and Transit, U.S. Army Corps of Engineers Civil Works, and Drinking Water and Wastewater State Revolving Fund Programs. Ultimately, agency lawyers will make the determination on a program-by-program basis and—under the EO—must provide guidance by on or about May 1, 2019.
AGC-Led Coalition Letter Introduced at Hearing
 
On Feb. 7, the House Transportation & Infrastructure Committee held its first hearing of the new Congress entitled, “The Cost of Doing Nothing: Why Investing in Our Nation's Infrastructure Cannot Wait.” Witnesses included: Los Angeles Mayor Eric Garcetti; former Secretary of Transportation Ray LaHood; and Minnesota Governor Tim Walz. The hearing focused on drawing attention to the needs of our nation’s infrastructure and solutions on how to address those needs – including fixing the Highway Trust Fund, increasing the Passenger Facility Charge, and providing more resources for clean and drinking water. At the beginning of the hearing, new committee Chairman Peter DeFazio (D-Ore.) submitted for the record an AGC and National Association Manufacturers-led letter to congressional leaders asking them to act on a bipartisan infrastructure bill. Chairman Defazio highlighted the fact that the letter was signed by 150 groups including traditional and non-traditional infrastructure stakeholders. AGC will continue to work with Congress in moving a robust and broad infrastructure package.
 
For more information, contact Sean O’Neill at oneills@agc.org or (202) 547-892.
 
On February 18, the next Congressional district work week begins. During this time, AGC encourages you to meet with your Representatives and Senators to build stronger relationships and inform them about issues facing the construction industry. Meetings can include meetings in the member’s office, inviting them to a board meeting or having them tour a construction site to give them a hands-on learning experience. 
Federal Agencies
SBA Says Rule Not Immediately Effective
 
On Dec. 17, 2018, the Small Business Runway Extension Act (H.R. 6330), which modifies the method for assigning size standards for small businesses, was signed into law. The law modifies Small Business Administration (SBA) reporting requirements to allow businesses to report average earnings over the last five years, rather than three. As AGC has previously reported, the law will need to go through the usual public notice and comment process before small businesses will receive the full benefits of the expanded lookback period. The SBA has acknowledged that there has been some confusion as to whether the five year look back period is effective immediately. SBA recently issued an Information Notice to all of the agency’s Government Contracting and Business Development employees stating: “The change made by the Runway Extension Act is not presently effective and is therefore not applicable to present contracts, offers, or bids until implemented through the standard rulemaking process”… “Until SBA changes its regulations, businesses still must report their receipts based on a three-year average.”
AGC Provides Educational Resources to Help Members Comply
 
As of Feb. 7, the U.S. Occupational Safety and Health Administration (OSHA) requires all contractors to evaluate crane operators under the new final rule regulating crane operator qualification and evaluation. AGC of America has spent nearly 16 years working with OSHA under three different presidential administrations to make this rule less burdensome and provide the greatest positive safety impact possible. Our mission to help AGC members does not stop when the ink dries on regulations impacting your construction company. We also want to help ensure you have the information necessary to comply. That is why we created valuable AGC educational resources.
 
On Feb. 6, the U.S. Environmental Protection Agency (EPA) finalized its 2019 penalty rule that increased the maximum civil penalties per violation of an environmental statute or agency regulation. These annual adjustments are required by the Federal Civil Penalties Inflation Adjustment Improvements Act of 2015.  Below are the new 2019 penalty maximum levels to account for inflations. In practice, fines tend to track the perceived or actual economic benefit derived from the violation(s) – consistent with applicable EPA penalty policies.
In Line with AGC Recommendations
 
On Jan. 25, the Occupational Safety and Health Administration (OSHA) published its final rule amending the recordkeeping regulation by rescinding—in line with AGC recommendations—the requirement for establishments with 250 or more employees to electronically submit information from OSHA Forms 300 (Log of Work-Related Injuries and Illnesses) and 301 (Injuries and Illnesses Incident Report). AGC called for this amendment because (1) information in the Form 301 could lead to the public disclosure of individual employees’ identity and private health information; and (2) data included in the forms could unfairly characterize a construction contractor’s safety and health record. These establishments will continue to submit information from their OSHA Form 300A (Summary of Work-Related Injuries and Illnesses) as has been required in 2017 and 2018.

For more information, please contact Kevin Cannon at (703) 837-5410 or cannonk@agc.org.
Smith, Currie & Hancock, LLP
Upcoming Events
AGC News
Government Data on Construction Spending, Association Survey Find Demand for All Project Types; Officials Call for More Funds for Training and Education, Immigration Reform to Keep Work on Track
 
Construction employment increased by 52,000 jobs in January and by 338,000 jobs, or 4.7 percent, over the past year, while the latest reading on construction spending showed moderate increases in all major categories, according to an analysis of new government data by AGC of America. Association officials urged government officials to strengthen career and technical education programs and facilitate immigration for workers with construction skills before a worker shortage stalls completion of needed infrastructure.
 

 

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